Mortgage Refinance Calculator
Compare your current loan to a new one and see your break-even point and lifetime savings.
Current Loan
New Loan
Monthly Savings
$777/mo
New Payment: $1,751/mo
Break-Even
8 mo
Interest Savings
$128,141
Lifetime Savings
+$122,141
Current vs New Loan
Should You Refinance?
The numbers suggest refinancing makes sense. You'll break even in 8 months and save $122,141 over the life of the loan.
Disclaimer
- Estimates only — get a Loan Estimate from your lender.
- Does not include escrow changes, PMI, or property tax adjustments.
- Cash-out refinance rates may be slightly higher than rate-and-term.
When Should You Refinance?
The classic rule of thumb is the "1% rule" — refinancing makes sense if you can lower your rate by at least 1 percentage point. But the real test is the break-even point: how many months until your monthly savings recoup the closing costs? If you plan to stay in the home longer than the break-even period, refinancing likely wins.
Rate-and-Term vs Cash-Out Refinance
| Feature | Rate-and-Term | Cash-Out |
|---|---|---|
| Purpose | Lower rate or change term | Access home equity |
| Loan Amount | Same as current balance | Higher (balance + cash) |
| Rates | Lower | Slightly higher |
| Max LTV | Up to 97% | Typically 80% |
| Best For | Saving on interest | Home improvements, debt consolidation |
The Break-Even Calculation
Break-even = Closing costs ÷ Monthly savings. For example, if refinancing costs $6,000 and saves $200/month, break-even is 30 months. If you sell or refinance again before 30 months, you lose money on the transaction.
15-Year vs 30-Year Refinance
Refinancing from a 30-year to a 15-year mortgage significantly increases your monthly payment but saves tens of thousands in interest. The 15-year rate is typically 0.5-0.75% lower than the 30-year rate. If you can afford the higher payment, this can be a powerful wealth-building move.
CFPB — Explore Interest Rates→Frequently Asked Questions
How much does refinancing cost?
Refinance closing costs typically run 2-5% of the loan amount ($3,000-$15,000 on a $300K loan). Some lenders offer "no-closing-cost" refinances that roll costs into the rate or balance — convenient, but you pay more over time.
How many times can you refinance?
There's no legal limit, but most lenders require a "seasoning period" of 6-12 months between refinances. Each refinance resets your amortization clock, so frequent refinancing can work against you.
Should I refinance if I'm close to paying off my mortgage?
Usually not. If you have fewer than 10 years left, the remaining interest is mostly paid and closing costs rarely make sense. You'd be restarting at a higher interest-to-principal ratio.
Need to understand your current mortgage? Use our Mortgage Calculator or check Closing Cost Calculator.